QualComm to go to 600 in a month

[Dairies from bubbles past ... these posts may have been out for a while, but the bear market is just beginning, so they should still be interesting reads ...]

QCOM : Bullish, entry point 360-380, price target 580.



Qualcomm (QCOM: 371, -13) has gone up by nearly 1000% since January, and has nearly oubled in November. Such meteoric rise could make a lot of people nervous. Yet, recent price action suggested that all signs are still bullish and the stock could reach the vacinity of 600 before the end of the year.

From a height of 220 at the beginning of November, the stock raced to 400 in as few as 9 trading days. The stock has since entered a consolidation phase, oscilating between 400 and 320. However, the amplitude of the oscilation is narrowing with the volume decreasing, bullish signs that the stock is getting used to its new height. The stock could break out of the oscillation any day now and continues its stellar rise.

Entry point should be between 360-380, and price target should be 200 above your entry point.

By some estimates, wireless access could become 25-30% of the internet world within a few years, and digital cell phone growth continues at a rapid pace in both developed and developing countries. As the dorminant IP holder for wireless technology, Qualcomm is well positioned to profit from this phenomenal growth.

During the spectacular rise, Qualcomm management has declared a 4-to-1 stock split on Nov 2, pending stockholder approval Dec 20. The actual split will come after that. After the split the stock would be priced again in the vacinity of 100. However, impatient traders and investors may not wait for the split, but may push the price toward our target before the end of the year.

If the stock ever reaches 600, it will be one of the highest priced stock ever in the history of the stock market.

Risk: watch for signs of reversal in the general market.

Sector Watch:

Bullish for the wireless internet sector. Main attractions in this sector
are QCOM and PHCM, with many other smaller players.

Stock Update:

Update of stocks mention in this page:

Stock	Date Mentioned	Price Then	Price Now	Comment
PUMA	11/23/99	42	46.75	Still Bullish

Return to Stock Commentary Page.
(c) Copyright Ya-Gui Wei 1999, 2000.

11.29.99